Model Detailed Project Report
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Model Detailed Project Report NAMKEEN MANUFACTURING UNIT Prepared by National Institute of Food Technology Entrepreneurship and Management(NIFTEM) Plot No. 97, Sector 56, HSIIDC, Industrial Estate, Kundli, Sonipat, Haryana 131028 Ministry of Food Processing Industries, Government of India 1. INTRODUCTION NAMKEEN MANUFACTURING UNIT Namkeen is the Hindi word used to describe a savory flavor. The word namkeen is derived from the word Namak (meaning salt). Namkeen is also used as a generic term to describe savory snack foods. Both black and regular white salt are used in Indian cooking, which gives it the salty flavor many people like. Other namkeen snacks common in Indian cuisine include khaara, farsan, chivda, sav, chips and bhujiya. Namkeen of Indore and Ratlam are two snacks that are very well known for their tastes. Namkeen foods are typically designed to be portable, quick, and satisfying. Processed snack foods, as one form of convenience food, are designed to be less perishable, more durable, and more portable than prepared foods. They often contain substantial amounts of sweeteners, preservatives, and appealing ingredients such as chocolate, peanuts, and specially-designed flavors. 2. MARKET POTENTIAL: India traditional snacks market has shown tremendous growth in the past couple of years. The market is forecasted to grow with a CAGR of more than 7% in near future. Increasing consumer's awareness towards healthy and packaged traditional snacks has created a huge demand for Namkeen in past couple of years. Namkeen is the dominant segment, followed by the Extruded Snacks. The market is also segmented into organized and unorganized sector of which unorganized is the dominant market. The India Snacks Market will be more than INR 1 Billion by the end of 2024. At present Unorganized market is dominating the India snacks market. But this scenario is expected to change during the forecast period of 2020-2024. India Snacks Market is growing due to following factors Lifestyle Changes, Rising Urbanization, Growing Middle Class Population, Local Availability and Availability of Snacks in Small Package Size, Low Price and Company’s Strategies to focus on regional taste. 3. PRODUCT DESCRIPTION 3.1 PRODUCT TYPES & SIZE Indian consumers seem to have recovered their taste for traditional snacks such as sev, bhujia and namkeen/ mixtures, which are contributing to the impressive growth rate of the fi rms. To elaborate further, namkeens can be characterized into three segments as: Single product segment: Moong Dal, Chana Dal, Peanut, Nut Cracker, Karare Peanut, Heeng Jeera Peanut, Masala Matar, Mathri, Namkeen Pare, etc. Single product in bhujia: Plain Sev, Bikaneri Bhujia, Aloo Bhujia, Punjabi Tadka, Ratlami Sev, Bhavnagri Gathiya, etc. Lots of mix: Navratan Mix, Khatta Meetha, Chatpata Mix, Magic Mix, Royal Treat, Kanpuri Mix, Bombay Mix, Kaju Mix, Kashmiri Mix, All in One, etc. Now Namkeen is well known to each and every part of our geography. South and North East part of India has good demand of Namkeen because of mix culture. Size of the product Namkeen products are packed in different types of packaging product with different sizes. Pouch Packaging Size 50 gram 100 gram 250 gram 500 gram 1 KG 3.2 Raw Material Requirement S.N. Particulars Rate per KG 1 Besan 65-70 2 Oil 90-100 3 Spices 200-250 5 Dal 80-90 6 Peanut 110-120 7 Potato 12-15 Average raw material cost per KG: Rs. 65-70 3.3 MANUFACTURING PROCESS Procurement of raw material. Preparation of dough with the help of dough mixer. Then with the help of Bhujia machine extruder convert the dough into the shape of required namkeen. After that take it into the frying section. Drying of namkeen After frying, mix all the other ingredients like: peanut, spices etc. as per the different taste of the namkeen. Seasoning of namkeen with the help of seasoning machine. Packaging of goods. Transportation. 4. PROJECT COMPONENTS 4.1 Land Land required 1200-1500 square feet approx. Approximate rent for the same is Rs.25000-30000 per month. 4.2 Plant & Machinery Machine Description Image Dough Mixer Used for quickly mixing batches of dough or batter. Bhujia extruder This machine is useful Machine for extruding sev, papdi, ganthia etc. The machine is fitted over frying pan. Rectangular batch Used for processing tilting fryer with diesel various types Burner of namkeen Seasoning drum Seasoning machine can be used to season and mix all kinds of Namkeen. It can mix and season food evenly and then discharge them automatically. Packaging Machine For packaging of namkeen into different size and types of packets. Note: Cost of the machine is approx. Rs. 12,00,000 excluding GST and other Transportation cost. 4.3 Misc. Assets S.N. Item Description Rate 1 electricity connection 70,000 2 Furniture and equipment’s 50,000 3 Storage tank, collection tank etc. 30,000 4.4 Power Requirement The borrower shall require power load of 15 KW which shall be applied with Power Corporation. However, for standby power arrangement the borrower shall also purchase DG Set. 4.5 Manpower Requirement 6-7 Manpower are required for the Namkeen Manufacturing unit. Includes: 2 Skilled Labour 2 Unskilled Labour 2 Helper 1 Accountant 5. FINANCIALS 5.1 Cost of Project COST OF PROJECT (in Lacs) Own Bank PARTICULARS AMOUNT Contribution Finance 25.00% 75.00% Land & Building Owned /rented Plant & Machinery 12.00 3.00 9.00 Furniture & Fixtures and Other Assets 1.50 0.38 1.13 Working capital 6.67 1.67 5.00 Total 20.17 5.04 15.13 5.2 Means of Finance MEANS OF FINANCE PARTICULARS AMOUNT Own Contribution 5.04 Bank Loan 10.13 Working capital Limit 5.00 Total 20.17 5.3 Projected Balance Sheet (in Lacs) PROJECTED BALANCE SHEET PARTICULARS 1st year 2nd year 3rd year 4th year 5th year Liabilities Capital opening balance 5.86 7.97 10.26 12.86 Add:- Own Capital 5.04 Add:- Retained Profit 2.57 4.86 7.29 9.60 11.96 Less:- Drawings 1.75 2.75 5.00 7.00 9.50 Closing Balance 5.86 7.97 10.26 12.86 15.32 Term Loan 9.00 6.75 4.50 2.25 - Working Capital Limit 5.00 5.00 5.00 5.00 5.00 Sundry Creditors 2.46 2.83 3.23 3.69 4.19 Provisions & Other Liab 0.50 0.63 0.75 0.90 1.08 TOTAL : 22.82 23.18 23.74 24.71 25.59 Assets Fixed Assets ( Gross) 13.50 13.50 13.50 13.50 13.50 Gross Dep. 1.95 3.62 5.04 6.25 7.29 Net Fixed Assets 11.55 9.89 8.46 7.25 6.21 Current Assets Sundry Debtors 3.48 4.18 4.82 5.51 6.23 Stock in Hand 6.28 7.21 8.19 9.35 10.58 Cash and Bank 1.51 1.90 2.26 2.60 2.57 TOTAL : 22.82 23.18 23.74 24.71 25.59 5.4 Projected Cash Flow (in Lacs) PROJECTED CASH FLOW STATEMENT PARTICULARS 1st year 2nd year 3rd year 4th year 5th year SOURCES OF FUND Own Margin 5.04 Net Profit 2.57 4.86 7.56 10.29 13.27 Depriciation & Exp. W/off 1.95 1.67 1.42 1.21 1.04 Increase in Cash Credit 5.00 - - - - Increase In Term Loan 10.13 - - - - Increase in Creditors 2.46 0.37 0.39 0.47 0.50 Increase in Provisions & Oth lib 0.50 0.13 0.13 0.15 0.18 TOTAL : 27.65 7.02 9.50 12.13 14.98 APPLICATION OF FUND Increase in Fixed Assets 13.50 Increase in Stock 6.28 0.93 0.98 1.16 1.23 Increase in Debtors 3.48 0.70 0.64 0.68 0.73 Repayment of Term Loan 1.13 2.25 2.25 2.25 2.25 Drawings 1.75 2.75 5.00 7.00 9.50 Taxation - - 0.27 0.69 1.31 TOTAL : 26.14 6.63 9.14 11.78 15.01 Opening Cash & Bank Balance - 1.51 1.90 2.26 2.60 Add : Surplus 1.51 0.39 0.36 0.34 (0.03) Closing Cash & Bank Balance 1.51 1.90 2.26 2.60 2.57 5.5 Projected Profitability (in Lacs) PROJECTED PROFITABILITY STATEMENT PARTICULARS 1st year 2nd year 3rd year 4th year 5th year Capacity Utilisation % 50% 55% 60% 65% 70% SALES Gross Sale Namkeen 116.00 139.50 160.83 183.61 207.82 Total 116.00 139.50 160.83 183.61 207.82 COST OF SALES Raw Material Consumed 82.11 94.48 107.62 123.16 139.71 Electricity Expenses 3.60 4.14 4.76 5.48 6.02 Depreciation 1.95 1.67 1.42 1.21 1.04 Wages & labour 5.64 6.20 6.82 7.51 8.26 Repair & maintenance 3.48 4.18 4.82 5.51 6.23 packaging 9.60 11.09 12.70 14.45 16.34 Cost of Production 106.38 121.77 138.15 157.31 177.59 Add: Opening Stock /WIP - 3.55 4.06 4.61 5.24 Less: Closing Stock /WIP 3.55 4.06 4.61 5.24 5.92 Cost of Sales 102.83 121.25 137.61 156.67 176.92 GROSS PROFIT 13.17 18.24 23.22 26.94 30.91 Salary to Staff 3.72 4.09 4.50 4.95 5.45 Interest on Term Loan 1.00 0.88 0.63 0.38 0.13 Interest on working Capital 0.55 0.55 0.55 0.55 0.55 Rent 3.60 3.96 4.36 4.79 5.27 selling & adm exp 1.74 3.91 5.63 5.97 6.23 TOTAL 10.61 13.38 15.67 16.64 17.64 NET PROFIT 2.57 4.86 7.56 10.29 13.27 Taxation 0.27 0.69 1.31 PROFIT (After Tax) 2.57 4.86 7.29 9.60 11.96 5.6 Production and Yield COMPUTATION OF PRODUCTION OF NAMKEEN Items to be Manufactured Namkeen Production capacity 100 KG per Hour Working hours per day 8 machine capacity per day 800 KG machine capacity per annum 240000 KG wastage 5% Of Input Raw Material Requirement 252632 KG Final Product One Packet size (assumed) 500 Grams Total Packets per annum 480000 Packets Production of Namkeen Production Capacity Packets 1st year 50% 240,000 2nd year 55% 264,000 3rd year 60% 288,000 4th year 65% 312,000 5th year 70% 336,000 Raw Material Cost Year Capacity Rate Amount Utilisation (per KG) (Rs.